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Xero

From Wikipedia, the free encyclopedia

Xero Limited
TypePublic
ISINNZXROE0001S2
IndustrySoftware as a service
FoundedJuly 6, 2006; 20 years ago (July 6, 2006) in Wellington, New Zealand
Founders
Headquarters
Wellington, New Zealand
Key people
ProductsAccounting software
RevenueIncrease NZ$2.103 billion [1] (2025)
Increase NZ$362.6 million[1] (2025)
Increase NZ$227.8 million[1] (2025)
Total assetsIncrease NZ$4.463 billion[1] (2025)
Total equityIncrease NZ$2.196 billion[1] (2025)
Number of employees
4,610[1] (2025)
Websitexero.com
Footnotes
[1][2][3][4][5][6]

Xero Limited is a New Zealand technology company that provides cloud-based accounting software for small businesses. The company has offices in New Zealand, Australia, the United Kingdom, the United States, Canada, South Africa and Singapore.[7][8] Xero's products are based on the software-as-a-service model and sold by subscription, based on the type and number of entities managed by the subscriber.[9] The products are used in over 180 countries.[10][11]

History

[edit]

On July 6, 2006,[12] Xero was founded by Rod Drury and Hamish Edwards in Wellington,[13][14][15] where Xero Limited's headquarters are still located.[16] The company was originally called Accounting 2.0.[15]

By 2017, Xero had more than one million customers globally,[17] and the following year, it had more than one million subscribers in Australia and New Zealand.[18] In April 2018, Steve Vamos was appointed as CEO, replacing Rod Drury who remained on the board as a non-executive director until 2023.[19] Vamos announced in November 2022 that he would step down in February 2023 and be replaced by Sukhinder Singh Cassidy, a former executive of Google and StubHub.[20][21]

In 2019, the company announced it had over two million global subscribers,[22] and three million subscribers in September 2021.[23]

In March 2023, Sukhinder Singh Cassidy, the CEO of Xero, announced the removal of 700-800 roles across Xero, representing approximately 15% of the employee base.[24] At this time, the company reportedly had more than 3.5 million subscribers and about 4,500 staff across offices in New Zealand, Australia, North America, the UK and southeast Asia.[25] The company announced it had finished its job cuts by November 2023, reducing headcount to 4,242 staff.[26]

In May 2024, the company announced it had achieved a Rule of 40 outcome of 41.0%, followed by a Rule of 40 outcome of 43.9% in November 2024.[27]

In June 2025, Xero announced an agreement to acquire Melio, a New York-based payments provider, for $2.5 billion.[28]

Products

[edit]

The Xero accounting software uses a single unified ledger, which allows users to work in the same set of books regardless of location or operating system.[29] It provides automatic bank feeds, invoicing, accounts payable, expense claims, fixed asset depreciation, purchase orders, bank reconciliations, and standard business and management reporting.[30]

In 2011 and 2012, the Xero Touch mobile apps for iOS and Android devices were released.[31]

In the 2019 financial year, Xero offered services relating to Making Tax Digital in the United Kingdom,[32] Single Touch Payroll in Australia,[33] and Payday Filing in New Zealand.[34]

In 2026 Xero announced a partnership with Anthropic to add AI to their accounting software.[35]

Funding

[edit]

Xero went public on the New Zealand Exchange on 5 June 2007, with a NZ$15 million IPO, gaining 15% on its first trading day.[36] It went public on the Australian Securities Exchange (ASX) on 8 November 2012.[3][37]

Xero transitioned to a sole listing on the ASX on 5 February 2018, delisting from the NZX on 2 February 2018.[38] In September 2019, the market capitalisation of Xero on the ASX exceeded NZ$10 billion, and it was ranked as the third most valuable publicly listed New Zealand company.[39]

Xero has also received funding from various investors. In 2009, it received NZ$23 million of funding led by MYOB founder, Craig Winkler.[40] It raised an additional NZ$4 million in 2010 from Peter Thiel's Valar Ventures who also invested an additional US$16.6 million in February 2012.[41] It raised $49 million in a funding round in November 2012 with the largest amounts coming from Peter Thiel and Matrix Capital.[42] The company raised more than $100 million at a valuation of approximately $1.4 billion on the NZE by May 2013.[43][44] This valuation was before receiving an additional NZ$180 million from Thiel and Matrix in October 2013, bringing total funding to more than $230 million.[45] Xero raised an additional $100 million from Accel and $10.8 million from Matrix Capital on 25 February 2015.[46] On 5 October 2018, Xero announced a settlement of US$300 million in convertible notes, more than previously raised by a New Zealand or Australian company not listed in the United States.[47]

Acquisitions and partnerships

[edit]

In July 2011, Xero acquired the Australian online payroll provider Paycycle for a mixture of cash and shares totaling NZ$1.9 million, to integrate the company's products into its services.[48] It acquired Spotlight Workpapers in July 2012 for a mixture of cash and shares totaling $800,000.[49]

In July 2018, Xero formed a partnership with US payroll platform Gusto.[50] In August 2018, it acquired Hubdoc, a data capture application.[51] In November 2018, it acquired cloud-based accounts preparation and tax filing application Instafile for £5.25 million.[52]

In August 2020, Xero acquired Waddle, an Australian-based invoice financing startup, for A$80 million. The payment included $31 million in cash and $49 million in earnout payments. Waddle allows small businesses to access loans secured by their accounts receivables.[53][54] In March 2023, Xero announced it was cutting jobs and closing the Waddle app.[55]

In November 2021, it acquired inventory management provider Locate Inventory for US$19 million,[56] and in December 2021, Xero announced it was acquiring Canadian tax software provider, TaxCycle, for CA$75 million.[57]

In November 2022, Xero announced the establishment of a technology base in India in partnership with technology outsourcing company Infosys.[58] The India technology base includes engineering and developer roles.[58]

In April 2024, Xero announced a strategic partnership with workforce management platform Deputy.[59] As part of the agreement, Xero invested US$25 million to take a minority stake in Deputy and announced plans to embed Deputy’s shift work management capabilities into Xero’s payroll platform for Australian customers.[60]

In September 2024, Xero announced the acquisition of cloud-based reporting, insights and analytics platform Syft Analytics for up to US$70 million.[61]

In June 2025, Xero agreed to acquire US company Melio for US$2.5 billion in cash and stock, and up to $500 million in additional payments over three years. Melio co-founder and CEO Matan Bar will lead the US operations of the combined business.[62][63] Xero wants to grow in the U.S. which the company says is about 7% of its sales.[64]

See also

[edit]

References

[edit]
  1. 1 2 3 4 5 6 7 "Annual Report 2025" (PDF). Xero. 2025. Retrieved 16 May 2025.
  2. ↑ Laugesen, Ruth (17 October 2013). "From Xero a hero". New Zealand Listener. Archived from the original on 29 May 2020. Retrieved 2 January 2022.
  3. 1 2 Barwick, Harrish (8 November 2012). "NZ-based SaaS provider Xero lists on ASX". Computer World. Retrieved 15 January 2014.
  4. ↑ "Xero Limited 2018 Annual Report" (PDF). Archived from the original (PDF) on 12 July 2019. Retrieved 24 May 2016.
  5. ↑ "Xero Limited 2018 Interim Report" (PDF). Archived from the original (PDF) on 17 March 2018. Retrieved 17 March 2018.
  6. ↑ "ASX" (PDF).
  7. ↑ Mckenzie, Hamish (1 May 2013). "Xero: A billion-dollar software company that had five years in stealth at the bottom of the planet – New Zealand". Bamboo Innovator. Retrieved 4 November 2022.
  8. ↑ Campbell, Anita (13 October 2013). "Small Biz Accounting Software Space Heats Up As Xero Raises $150 Million". Small Biz Trends. Retrieved 15 January 2014.
  9. ↑ Robins, Brian (6 November 2013). "Sharemarket darling Xero dubbed 'Apple of accounting'". The Sydney Morning Herald. Retrieved 15 January 2014.
  10. ↑ "Xero grows to $1 Billion revenue – Enterprise Times". Enterprise Times. 20 July 2016. Retrieved 30 May 2018.
  11. ↑ Ryan, Holly (9 May 2018). "Xero halves losses, closes in on profitability". The New Zealand Herald. ISSN 1170-0777. Retrieved 12 July 2019.
  12. ↑ "What is Brief History of Xero Company?". Business Model Canvas Template. 15 March 2026. Retrieved 2 June 2026.
  13. ↑ "No guts, no glory for Xero boss". Stuff. 20 September 2014. Retrieved 1 March 2020.
  14. ↑ Gregersen, Hal. "How Rod Drury Built Xero From A 'Small Set Of Rocks In The South Pacific' Into A Global Player". Forbes. Retrieved 22 January 2020.
  15. 1 2 "THE UNTOLD STORY: How Xero took a band name and changed accounting for a million companies". Business Insider. Retrieved 27 June 2019.
  16. ↑ Brooks, Steve (20 July 2016). "Xero grows to $1 Billion revenue -". Enterprise Times. Retrieved 27 June 2019.
  17. ↑ Shaw, Aimee (29 March 2017). "Accounting software firm Xero surpasses one million users worldwide". ISSN 1170-0777. Retrieved 12 July 2019.
  18. ↑ "Xero hits million mark for trans-Tasman subscribers". New Zealand Reseller News. Retrieved 12 July 2019.
  19. ↑ Ryan, Holly (4 March 2018). "Xero CEO Rod Drury stepping down". The New Zealand Herald. ISSN 1170-0777. Retrieved 12 July 2019.
  20. ↑ "Xero appoints new CEO as Vamos set to depart". NBR | The Authority since 1970. 10 November 2022. Retrieved 15 November 2022.
  21. ↑ Ruth, Jenny (11 November 2022). "Xero shares plunge on CEO Steve Vamos' imminent departure". businessdesk.co.nz. Retrieved 15 November 2022.
  22. ↑ Waters, Cara (7 November 2019). "'A big milestone': Xero hits two million subscribers, revenue jumps". The Sydney Morning Herald. Retrieved 4 September 2020.
  23. ↑ Chanthadavong, Aimee (11 November 2021). "Xero posts half-year net loss as investment in product development grows". ZDNet. Retrieved 18 May 2022.
  24. ↑ "Reshaping Xero to enable disciplined growth and focus". Xero. 9 March 2023. Retrieved 12 November 2023.
  25. ↑ "Xero announces plan to cut up to 800 jobs". RNZ. 9 March 2023. Retrieved 8 May 2024.
  26. ↑ Stevenson, Rebecca. "Xero adds deep global expertise, ends painful job cuts". businessdesk.co.nz. Retrieved 8 May 2024.
  27. ↑ "Xero's FY24 Revenue up 22% to $1.7 Billion, delivers Rule of 40" (PDF). Xaero. Retrieved 16 May 2025.
  28. ↑ Kaye, Ron; Mukherjee, Rajasik; Kaye, Ron (25 June 2025). "New Zealand's Xero to buy US fintech Melio for up to $3 billion". Reuters. Retrieved 5 August 2025.
  29. ↑ Lam, Greg (2 July 2013). "Cloud Accounting Comparison – Data Import and Export". Sleeter. Archived from the original on 13 July 2018. Retrieved 16 January 2014.
  30. ↑ Sherman, Matt (10 March 2025). "Xero Review". Merchant Maverick.
  31. ↑ Fineberg, Seth (2 October 2012). "Xero Debuts Mobile App for Android". Accounting Today. Archived from the original on 23 October 2013. Retrieved 9 September 2013.
  32. ↑ "Xero is preparing for Making Tax Digital". Accountancy Age. 15 November 2018. Retrieved 12 July 2019.
  33. ↑ Zaharov-Reutt, Alex (28 November 2018). "Xero says 'small businesses rushing to go digital as STP deadline approaches'". iwire.
  34. ↑ "Tax refund agents weigh futures as IRD prepares huge software release". New Zealand Reseller News. Retrieved 12 July 2019.
  35. ↑ "Xero signs deal with AI giant Anthropic". RNZ. 27 March 2026. Retrieved 9 April 2026.
  36. ↑ Niesche, Christopher (6 June 2007). "Xero begins strongly". New Zealand Herald. Retrieved 15 January 2014.
  37. ↑ Geron, Tomio. "Peter Thiel's Valar Ventures Joins $67 Million Round For Xero". Forbes. Retrieved 22 January 2020.
  38. ↑ "Shareholder update on Xero listing". NZX. 22 January 2018. Retrieved 4 September 2020.
  39. ↑ Pullar-Strecker, Tom (6 September 2019). "Xero joins elite club as value surges past $10 billion". Stuff.co.nz. Retrieved 9 August 2020.
  40. ↑ Sharp, Ari (7 April 2009). "MYOB founder buys into rival". The Sydney Morning Herald. Retrieved 22 January 2020.
  41. ↑ Wauters, Robin (22 October 2010). "Peter Thiel Invests $3 Million In Xero To Support Its US Expansion". Tech Crunch. Retrieved 15 January 2014.
  42. ↑ Tanwani, Maneka. "Xero secures US$141M from Accel Partners, Matrix Capital Management". e27. Retrieved 15 December 2020.
  43. ↑ McKenzie, Hamish (1 May 2013). "Xero: A billion-dollar software company that had five years in stealth at the bottom of the planet". Pando Daily. Retrieved 15 January 2014.
  44. ↑ Williams, Alex (29 November 2012). "Peter Thiel And Existing Investors Put Another $49 Million In Accounting Software Company Xero". Tech Crunch. Retrieved 15 January 2014.
  45. ↑ Lunden, Ingrid (13 October 2013). "Xero Zeros In On Another $150M To Do Battle With Intuit In The World Of Online SMB Accounting Software". Tech Crunch. Retrieved 15 January 2014.
  46. ↑ "Xero secures US$141M from Accel Partners, Matrix Capital Management". e27. Retrieved 22 January 2020.
  47. ↑ "Achievement Awards 2018 – Australia/NZ Part 1 | australia awards, achievement awards, awards, australia, new zealand". FinanceAsia. Retrieved 4 July 2019.
  48. ↑ Rogers, Claire (21 July 2011). "Xero buys payroll firm to boost Aust growth". Stuff.co.nz. Retrieved 19 September 2013.
  49. ↑ "Startup profile: Richard Francis from Spotlight Reporting". Futurebooks. 30 September 2015. Archived from the original on 10 January 2021. Retrieved 18 December 2020.
  50. ↑ Gray, Jamie (19 July 2018). "Xero forms alliance with US payrolls platform Gusto". ISSN 1170-0777. Retrieved 12 July 2019.
  51. ↑ "Xero acquires Hubdoc". Finextra Research. 1 August 2018. Retrieved 12 July 2019.
  52. ↑ Brooks, Steve (16 November 2018). "Xero acquires Instafile for £5.25 million -". Enterprise Times. Retrieved 22 January 2020.
  53. ↑ Waters, Cara (25 August 2020). "Xero snaps up small business lender Waddle for $80 million". The Sydney Morning Herald. Retrieved 1 September 2020.
  54. ↑ Chanthadavong, Aimee. "Xero to acquire Waddle for AU$80 million". ZDNet. Retrieved 16 September 2020.
  55. ↑ King, Philip (9 March 2023). "Xero to cut hundreds of jobs, close Waddle app". accountantsdaily.
  56. ↑ Hood, Daniel (12 November 2021). "Xero acquires inventory mgmt. provider". accounting today. Retrieved 19 July 2022.
  57. ↑ Scott, Josh (28 December 2021). "Xero to acquire Calgary's TaxCycle in $75 million CAD deal to expand Canadian presence". betakit. Retrieved 19 July 2022.
  58. 1 2 "Xero establishes a technology base in India". Archived from the original on 29 November 2022. Retrieved 29 November 2022.
  59. ↑ "Xero enters strategic Australian partnership with Deputy". Xero. 29 April 2024. Retrieved 6 January 2026.
  60. ↑ Salmon, Kaleah (1 May 2024). "Xero invests USD $25m in Deputy for seamless business management solution". CFOTech Australia. Retrieved 6 January 2026.
  61. ↑ "Xero buys South African firm for $115m in 'departure'". NZ Herald. 16 May 2025. Retrieved 16 May 2025.
  62. ↑ Gould, Ryan; Haigh, Adam (25 June 2025). "New Zealand's Xero to Buy Melio Payments in $2.5 Billion Deal". Bllomberg. Retrieved 26 June 2025.
  63. ↑ Kaye, Byon; Mukherjee, Rajasik (25 June 2025). "New Zealand's Xero to buy US fintech Melio for up to $3 billion". Reuters. Retrieved 26 June 2025.
  64. ↑ Kaye, B., & Mukherjee, R. (2025, June 25). New Zealand's Xero to buy US fintech Melio for up to $3 billion. Reuters. https://www.reuters.com/legal/transactional/australia-listed-xero-acquire-fintech-melio-over-25-billion-deal-2025-06-24/
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